Capterra Glossary
Bitcoin
Bitcoin is a form of digital currency designed to function without the oversight of banks or government entities. This popular cryptocurrency operates on a decentralized ledger system (known as a blockchain) that facilitates the transfer of bitcoins from peer to peer, verifies and keeps a record of all bitcoin transactions, and manages the overall supply of available bitcoins. To make a transaction using bitcoin, customers access their bitcoin wallet app and send the virtual currency to a unique signature linked to a company or individualʻs bitcoin wallet.
What Small and Midsize Businesses Need to Know About Bitcoin
Bitcoin is one of the leading forms of cryptocurrency due to its ability to accelerate the speed of transactions, eliminate pesky banking fees, and provide individuals and businesses with full control over their transactions.
The peer-to-peer nature of this form of cryptocurrency allows for quicker, less expensive monetary transactions, saving small and midsize companies valuable time and resources. Unlike currencies regulated by financial institutions or government entities, with Bitcoin there are no fees associated with customer payments.
Using bitcoin as a form of digital payment also enables businesses to facilitate hassle-free transactions to a broader consumer base. Bitcoin can be used by persons who don't have a bank account, allowing companies to expand their market to consumers that choose not to perform transactions by way of financial institutions.
Related Terms
- Compound Annual Growth Rate (CAGR)
- Financial Planning and Analysis (FP&A)
- Selling General and Administrative (SG&A) Expenses
- Hedge Fund
- Gateway
- Record to Report (R2R)
- ROIT (Return on Information Technology)
- Chief Revenue Officer (CRO)
- SAC (Subscriber Acquisition Cost)
- ROE (Return on Equity)
- Tokenization
- Net Present Value
- Fintech
- Financial Management System (FMS)
- Business Capability Modeling